Reference no: EM132485095

Problem: The expected return of Skysong is 18.5 percent, and the expected return of Concord is 23.5 percent. Their standard deviations are 12.5 percent and 20.5 percent, respectively. If a portfolio is composed of 30 percent Skysong and the remainder Concord.

Question 1: Calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Skysong and Concord of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.)

The expected return= %

Standard deviation of portfolio= %

Question 2: Calculate the standard deviation if the correlation coefficient is -0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.)

Standard deviation of portfolio= %